Surveillance group secures new capital

Security and surveillance technology company Petards has successfully completed a share issue to raise £1.125m of working capital.

The AIM-listed Gateshead-based business announced the offering of around 4,500,000 shares last month after it revealed that an attempt by its biggest shareholder to take over the company had failed.

Water Hall Holdings, which has previously attempted to prevent Petards raising capital by issuing shares, owned almost 30% of the company.

Now Petards has completed the placing the 1,346,298 New Ordinary Shares taken up in its recent Open Offer at 25 pence per New Ordinary Share when 3,153,047 shares were subscribed for.

Petards won an £8m contract in the summer to supply its eyeTrain on-board digital CCTV systems but the majority of deliveries under the contract will not me made until after the start of 2014.

In an earlier stgatement Petards said: “Although the impact of the contract will be relatively limited in the current and next financial year, thereafter the contract will significantly underpin the company’s financial performance and its future prospects.

“As a result your board is now able to plan for the future with much more confidence. Therefore to further enhance the prospects of the company, the board believes it would be appropriate for the company to raise additional equity capital.

It added: “The specific purpose of the fundraising would be to raise additional working capital and to accelerate the company’s product development programme.”